Digital Music RIP?

Itís ok, relax, the digital music market isnít dead, nor is Apple. Hereís why not:

∑ Digital music growth is organic rather than exponential. Though some have hoped for massive year on year growth, the reality is steady adoption.
∑ Digital music is not about to replace the CD. Even five years from now digital music sales will be less than 20% of total recorded music sales.
∑ Digital music buyers, iPod owners included, primarily use digital music as a complement to CD buying. So donít expect to see 40 or 50 tracks per year per buyer, thatís just not how the digital music market is evolving.
∑ The digital music market is still in its infancy and as such is more subject to seasonal trends etc, but also as it and MP3 player ownership become more mainstream, the stronger usage metrics of early adopters become diluted by mass market customers

And for those interested in more detail, we will be publishing our US and European music forecasts soon.